Hey folks,

We’re shaking things up a little to make your weekend reading even better.

Instead of saving the Markets story for a weekday, we thought why not slide it into your Saturday wrapups? The markets are shut, and you’ve got time to sip your coffee and read in peace.

So first, here’s a quick recap of what we wrote over the week:

On Monday, we looked at why India’s Commerce Minister is nudging startups to go big on deep tech. Tuesday’s newsletter explored whether AI agents could kill off apps as we know them. Wednesday’s story explained how Warren Buffett’s portfolio is quietly thriving while most billionaires are bleeding red. Thursday’s piece broke down why Trent’s stock has been taking a beating. And our Friday story told you about Trump’s tariffs and what they could mean for global trade.

So go ahead and enjoy your weekly dose of Finshots!

And if you’re someone who loves to keep tabs on what’s happening in the world of business and finance, then hit subscribe if you haven’t already. If you’re already a subscriber or you’re reading this on the app, you're all set.

With that out of the way, let’s now dive into today’s markets story, shall we?

What's driving the sparkle in India's listed jewellers?

In today’s Finshots, we talk about why India’s listed jewellery players are on a roll and whether the shine might last.

The Story

Ask your parents about buying gold jewellery back in the day and you’ll probably get a story. It meant walking into a cluster of local jewellers, sifting through dusty catalogues, bargaining hard and maybe even paying in instalments. The jeweller often knew your family. It was all very personal. My parents would take me to Mumbai’s Zaveri Bazaar and the whole thing felt like a day-long event. Full of awe and chaos.

But today? They’re more likely to walk into a gleaming showroom, browse the latest design on an app, and even pay using an EMI plan.

That’s because India’s jewellery business is undergoing a massive shift. A shift that’s now fuelling record-breaking growth for listed players like Titan, Kalyan Jewellers, Senco Gold and others.

And the numbers say it all.

In the latest quarter (Q4FY25), Titan’s jewellery sales jumped 25% year-on-year. Kalyan posted a 39% revenue growth. And Senco recorded its highest-ever Q4 revenue at ₹1,300 crores, with 23% retail growth.

Which makes us ask: What’s driving this surge and can the rally last?

Let’s start with the big transition – the shift to the organised jewellery market.

As per a report put up by Motilal Oswal Financial Services, back in 2000, the unorganised segment controlled 95% of India’s jewellery market. But by 2024, that was down to 65%. And organised players now hold over 35% of the ₹6 lakh crore market. That’s a huge shift in just two decades. And the reason behind this might be trust. People increasingly want hallmarking, purity certificates, transparent pricing and solid return policies. And large jewellery chains offer just that.

Then we have the most talked about headline – Rising gold prices.

They’ve shot up recently and are already sitting over ₹90,000 per 10 grams. But wait. Rising gold prices in theory should scare away buyers, no? Well, it seems they haven’t.

Take the case of the largest listed jeweller – Titan. Even though buyer footfall in its jewellery stores only grew in single digits during Q4FY25, the average ticket size shot up in double digits. Simply put, fewer people may be buying, but those who do are buying more. Even gold coins — often treated as an investment — saw a 65% surge in sales. Kalyan Jewellers, the second largest listed player, reported similar trends. Robust wedding demand and higher-value purchases pushed its sales up by 39%.

Then there are those monthly instalment schemes jewellers love to pitch, that are keeping gold demand very much alive. They’ve become quite the crowd-puller. After all, who wouldn’t want to chip in a little every month and walk away with gold later, without coughing up a big chunk of money all at once?

And jewellers are making these deals even sweeter with discounts on making charges or even a free instalment. It feels like a win-win. For customers, it’s an easy, low-pressure way to save up for gold. For jewellers, it’s a clever way to keep the cash flowing and demand buzzing, even when gold prices are climbing.

Sure, we don’t have the latest numbers just yet, but look at what happened in FY24. Tanishq saw a 10% jump in its monthly deposit schemes. Senco clocked in at 12%. And Reliance Jewels sparkled with a 24% rise. So if that trend is anything to go by, this momentum likely hasn’t lost its shine.

Another reason behind this sales uptick could also be the gold import duty cut from 15% to 6%. Because when gold prices dip, people rush to make purchases. Plus, most of the jewellery demand flows in the last quarter of the year, so most jewellers post a good Q3 and Q4 performance.

And of course, how can we forget weddings while talking about jewellery. Wedding jewellery makes up nearly 60% of India’s annual jewellery demand. With more auspicious dates in 2024 and 2025, and a post-pandemic boost, jewellery demand is booming. The twist here is that customers are no longer loyal to just their neighbourhood jeweller. They’re going to brands they trust. Which brings us to expansion by organised players.

Titan already has 768 exclusive jewellery stores, adding 16 more in the last quarter alone (4 Tanishq and 12 Mia stores). And apart from India, they’re expanding in the US and UAE too. Kalyan isn’t far behind. They wrapped up FY25 with 278 stores in India and 37 abroad. And for FY26, they’re planning to add 170 more (including 80 Candere stores).

And here’s the secret sauce behind their speed — franchise.

These players follow asset-light models that reduce inventory risk (a big deal in a business where gold prices swing wildly). Titan operates two franchise formats: one where it stocks the inventory, and another where the partner does. In both formats, the franchise runs day-to-day operations. Kalyan follows the FOCO model — short for Franchise Owned, Company Operated. The franchisee puts in the money to set up the store, but Kalyan takes care of everything else from hiring to billing to display. Think of it as the franchisee owning the house, while Kalyan decorates and runs it. Senco, on the other hand, uses a FOFO model — Franchise Owned, Franchise Operated — where both ownership and operations stay with the franchise partner.

These models let them scale fast, reach newer towns, and keep costs under control.

Now, you might be wondering if this kind of breakneck growth leads to cannibalisation. Well, don’t be because you could just look at Kalyan’s numbers. Despite opening dozens of new stores, their same-store-sales are still growing 20%+ year-on-year. That means new stores are bringing in fresh demand, not stealing from old ones.

So by now you know that the organised jewellery sector in India is having the time of its life.

But what about profitability? After all, that’s what investors care about, yeah?

Titan’s jewellery EBIT (earnings before interest and tax) margins hover around 12–13%. Kalyan’s are a bit lower at 7-8%. But both have managed to stay profitable even with volatile gold prices. How? Smart inventory management — like using gold metal loans and gold hedging strategies — and nudging customers toward higher-margin studded jewellery. And scale might be helping them too with improved supplier bargaining and offering consistent customer experiences.

Still, this isn’t a one-horse race.

Unlisted yet organised giant Malabar Gold & Diamonds has the highest market share, 375+ showrooms worldwide and is doubling down on India. Reliance Jewels — part of Reliance Retail — is expanding and is already across 126 Indian cities. And the Aditya Birla Group has launched a ₹5,000 crore retail play brand ‘Indriya’ to enter the jewellery space.

And there are global risks too. Like Trump’s new tariffs. The US has imposed a 10% baseline tariff on all imports. Since the US accounts for 37% of India’s gems and jewellery exports, this could pressure margins for listed exporters in the space.

So sure, the organised pie is growing. But so is the competition. And store experience, design innovation, and pricing will become key differentiators going forward.

So, what’s the verdict?

Listed and organised players have used the booming window in the last few years brilliantly. But the real test lies ahead. Gold prices will remain volatile. New players will crowd the market. And as growth slows, margins might shrink. Especially if organised players start battling it out on pricing.

For investors, that means this sector might offer value in small pockets. And valuations will be something they will have to look more closely at.

Still, the long-term trend looks strong. Organised jewellery retail is here to stay. Customers will get better experiences. And top players with scale, systems, and brand strength will stay in pole position.

Until then…

Don’t forget to share this story on WhatsApp, LinkedIn and X.

Only 17% of millennials have a term plan❗

Here’s why getting a term plan early can do wonders for you & your family:

✅Protection: Simply put, term insurance is where you pay a small amount of money in exchange for a large amount of protection. This protection usually kicks in in the event the policyholder passes away.

But not just that, if you ever develop a critical illness (eg. cancer) and have to quit your job, a term plan can give you a lump sum amount to make up for the lost income.

✅Secure Your Parents: As your parents near retirement, they may start to rely on your income. And so, a term plan will give you peace knowing that they'll be financially supported even in your absence.

✅Low Premiums Forever: A term plan of ₹1 crore will cost you much lower premiums at 25 years than at 35. You can even get a ₹1 crore cover for as little as ₹10,000 a year if you are young and healthy. Plus, once these premiums are locked in, they remain the same throughout the term!

So don’t delay it! As they say, “The best time to buy term insurance was yesterday; the next best time is today.”

Click here to book a FREE call with Ditto Insurance’s certified advisors and get your personalised term insurance guidance.